Chapter Four - General Rules
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Agreement on Internal Trade
September 1994
Page Index
- Article 400: Application
- Article 401: Reciprocal Non-Discrimination
- Article 402: Right of Entry and Exit
- Article 403: No Obstacles
- Article 404: Legitimate Objectives
- Article 405: Reconciliation
- Article 406: Transparency
- Article 407: Definitions
- Annex 405.1 Standards and standards-related Measures
- Annex 405.2 Regulatory Measures and Regulatory Regimes
Article 400: Application
The general rules established under this Chapter apply only to matters covered by Part IV, except as otherwise provided in this Agreement. In the event of an inconsistency between a specific rule in Part IV and a general rule in this Chapter, the specific rule prevails to the extent of the inconsistency.
Article 401: Reciprocal Non-Discrimination
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Subject to Article 404, each Party shall accord to goods of any
other Party treatment no less favourable than the best treatment it
accords to:
- its own like, directly competitive or substitutable goods; and
- like, directly competitive or substitutable goods of any other Party or non-Party.
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Subject to Article 404, each Party shall accord to persons,
services and investments of any other Party treatment no less
favourable than the best treatment it accords, in like
circumstances, to:
- its own persons, services and investments; and
- persons, services and investments of any other Party or non-Party.
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With respect to the Federal Government, paragraphs 1 and 2 mean
that, subject to Article 404, it shall accord to:
- the goods of a Province treatment no less favourable than the best treatment it accords to like, directly competitive or substitutable goods of any other Province or non-Party; and
- the persons, services and investments of a Province treatment no less favourable than the best treatment it accords, in like circumstances, to persons, services and investments of any other Province or non-Party.
- The Parties agree that according identical treatment may not necessarily result in compliance with paragraph 1, 2 or 3.
Article 402: Right of Entry and Exit
Subject to Article 404, no Party shall adopt or maintain any measure that restricts or prevents the movement of persons, goods, services or investments across provincial boundaries.
Article 403: No Obstacles
Subject to Article 404, each Party shall ensure that any measure it adopts or maintains does not operate to create an obstacle to internal trade.
Article 404: Legitimate Objectives
Where it is established that a measure is inconsistent with Article 401, 402 or 403, that measure is still permissible under this Agreement where it can be demonstrated that:
- the purpose of the measure is to achieve a legitimate objective;
- the measure does not operate to impair unduly the access of persons, goods, services or investments of a Party that meet that legitimate objective;
- the measure is not more trade restrictive than necessary to achieve that legitimate objective; and
- the measure does not create a disguised restriction on trade.
Article 405: Reconciliation
- In order to provide for the free movement of persons, goods, services and investments within Canada, the Parties shall, in accordance with Annex 405.1, reconcile their standards and standards-related measures by harmonization, mutual recognition or other means.
- Where a difference, duplication or overlap in regulatory measures or regulatory regimes operates to create an obstacle to internal trade, the Parties shall, in accordance with Annex 405.2, cooperate with a view to addressing the difference, duplication or overlap.
Article 406: Transparency
- Each Party shall ensure that its legislation, regulations, procedures, guidelines and administrative rulings of general application respecting matters covered by this Agreement are made readily accessible.
- A Party proposing to adopt or modify a measure that may materially affect the operation of this Agreement shall, to the extent practicable, notify any other Party with an interest in the matter of its intention to do so and provide a copy of the proposed measure to that Party on request.
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Paragraph 2 does not apply where the immediate implementation of a
measure is necessary to address an urgent situation related to a
legitimate objective, provided that, on adoption of the measure,
the Party adopting it:
- notifies the other Parties of the measure and provides a copy of the measure to any Party that requests it; and
- provides the other Parties with an opportunity to comment on the measure, and takes such comments into consideration.
- The provision of notice under paragraph 2 or 3 is without prejudice as to whether the measure is consistent with this Agreement.
- Each Party shall maintain an enquiry point able to answer reasonable enquiries and to provide information pertaining to its measures and to other matters covered by this Agreement.
- Each Party shall ensure that documents requested by interested persons or Parties are supplied in a non-discriminatory manner and that any fees charged are reasonable.
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Nothing in this Agreement shall be construed to require a Party to:
- communicate, publish text or provide particulars or copies of documents other than in an official language of the Party;
- disclose any information that could prejudice the legitimate commercial interests of particular persons or the disclosure of which could result in a person obtaining an unfair financial gain arising from the use of information that is not widely available; or
- disclose any information that by law is not subject to disclosure in order to ensure the proper functioning of government.
- For the purposes of paragraphs 6 and 7, "documents" includes information in electronic form.
Article 407: Definitions
In this Chapter:
- regulatory measure
- means a measure that does not contain a standard and that pertains to commercial activity;
- regulatory regime
- means a framework of regulatory measures or a system, including institutions or agencies, established to secure compliance with regulatory measures.
Annex 405.1
Standards and standards-related Measures
Scope and Coverage
1. This Annex applies to standards and standards-related measures covered by Part IV.
Non-Governmental Standardizing Bodies
2. Each Party shall, through appropriate measures, encourage observance of this Annex by non-governmental bodies that carry out activities in the field of standardization, including those bodies accredited as members of Canada's National Standards System, or by other bodies that develop or maintain standards with which compliance is not mandatory.
3. For greater certainty, paragraph 2 is not an obligation under Article 102(1)(c) (Extent of Obligations).
Right to Establish Standards and standards-related Measures
4. For greater certainty, a Party may, in accordance with this Agreement, adopt or maintain any standard or standards-related measure to achieve a legitimate objective and may, in pursuing that objective, establish the level of protection that it considers to be appropriate.
5. For greater certainty, with respect to the application of Article 404(c), each Party shall, in ensuring that any standard or standards-related measure that it adopts or maintains is not more trade restrictive than necessary to achieve a legitimate objective, take into account the risks that non-fulfilment of that legitimate objective would create and ensure proportionality between the trade restrictiveness of the standard or standards-related measure and those risks.
6. Each Party shall, in pursuing a legitimate objective, ensure that it acts consistently when addressing comparable situations.
7. Each Party shall, where appropriate and to the extent practicable, specify standards in terms of performance or competence.
8. Each Party shall ensure that its standards and standards-related measures have a scientific, factual or other reasonable basis and that, where appropriate, such standards and standards-related measures are based on an assessment of risk.
Conformity Assessment
9. Each Party shall ensure that its conformity assessment procedures are non-discriminatory and expeditious in respect of their treatment of goods and shall endeavour to ensure such non-discriminatory and expeditious treatment towards persons, services and investments of all other Parties. In the event that non-conformity with a standard is established, each Party shall identify in writing in what respect a particular person, good, service or investment failed to conform with the applicable standard.
10. Where the criteria used for accreditation of conformity assessment bodies are equivalent, a Party shall recognize the conformity assessment bodies located in the territory of another Party on terms no less favourable than those it affords to its own conformity assessment bodies or those of any other Party.
11. Where differing conformity assessment procedures produce equivalent results, a Party shall accept the certification of another Party that a satisfactory conformity assessment procedure has been completed.
12. Each Party shall avoid repeating a conformity assessment procedure already performed by a conformity assessment body located in the territory of any other Party and shall, to the extent practicable, use conformity assessment bodies accredited under Canada's National Standards System.
Reconciliation
13. In order to minimize potential obstacles to internal trade, the Parties shall establish mechanisms to consult and cooperate on matters relating to standards and standards-related measures.
14. Where a difference between a standard or standards-related measure of a Party and that of another Party is identified by a Party as operating to create an obstacle to internal trade, the affected Parties shall jointly conduct a review of the matter for the reconciliation of those standards or standards-related measures and make the results available.
Mutual Recognition
15. Where a Party accepts a standard or standards-related measure of another Party as equivalent to its own, it shall apply the principle of mutual recognition.
16. Where a Party does not accept a standard or standards-related measure of another Party as equivalent to its own, it shall, in response to a request from that other Party and within a reasonable period of time, provide detailed reasons for non-acceptance.
Harmonization
17. Each Party shall, where appropriate and to the extent practicable, base its standards on relevant National Standards, de facto national standards or international standards.
18. Where National Standards, de facto national standards or international standards do not exist or are not sufficient, the Parties shall cooperate to develop national standards and, wherever practicable, use Canada's National Standards System for that purpose.
19. Where a Party, in pursuing a legitimate objective, has or establishes a level of protection that is the same as that of another Party, the affected Parties shall endeavour to adopt a harmonized standard or standards-related measure in respect of that objective.
Advance Notification
20. Except in urgent circumstances, each Party shall allow a reasonable period of time between the date of publication and the date of implementation of a standard or standards-related measure in order to provide interested persons and Parties with sufficient time to adapt to the standard or standards-related measure. That Party shall, where appropriate, make the standard or standards-related measure available through Canada's National Standards System.
Definitions
21. In this Annex:
- assessment of risk
- means an evaluation of the potential for adverse effects on the ability to satisfy, achieve or conform with a legitimate objective;
- conformity assessment body
- means a person accredited to administer a conformity assessment procedure by the Standards Council of Canada or by a Party;
- conformity assessment procedure
- means a procedure used, directly or indirectly, to determine that a standard is fulfilled;
- de facto national standard
- means a standard recognized by all Parties;
- National Standard
- means a standard approved as a National Standard of Canada by the Standards Council of Canada;
- urgent circumstance
- means a situation where an urgent problem of safety, health, environmental protection or national security arises or threatens to arise.
Annex 405.2
Regulatory Measures and Regulatory Regimes
Scope and Coverage
1. This Annex applies to regulatory measures and regulatory regimes covered by Part IV.
Non-Governmental Bodies
2. Each Party shall, through appropriate measures, encourage observance of this Annex by non-governmental bodies that adopt or maintain regulatory measures or regulatory regimes that may affect internal trade.
3. For greater certainty, paragraph 2 is not an obligation under Article 102(1)(c) (Extent of Obligations).
Right to Establish Regulatory Measures and Regulatory Regimes
4. A Party may adopt or maintain any regulatory measure or regulatory regime that it considers necessary or appropriate to achieve a legitimate objective.
5. Each Party shall, in developing a new regulatory measure or regulatory regime, seek to ensure that the measure or regime is not more trade restrictive than necessary to achieve a legitimate objective.
Consultations
6. A Party may, or shall on the written request of a directly affected person of the Party, consult with another Party where the Party is satisfied that a difference, duplication or overlap between their regulatory measures or regulatory regimes operates to create a substantial obstacle to internal trade.
7. Where a Party approaches another Party under paragraph 6, the other Party shall respond and consult within a reasonable period of time.
8. The consulting Parties shall cooperate to seek to achieve a mutually satisfactory resolution of the issue raised.
9. Where differing regulatory measures or regulatory regimes of several Parties operate to create a substantial obstacle to internal trade, the affected Parties shall jointly conduct a review of the aspects of the regulatory measures or regulatory regimes that are creating the obstacle.
10. Chapter Seventeen (Dispute Resolution Procedures) does not apply to this Annex.